Market Roundup: What Happened Yesterday and What Awaits Us Today (February 18)

Wall Street rebounds cautiously ahead of inflation and growth data… Gold declines and oil fluctuates amid crucial anticipation

Major U.S. stock indexes trimmed early losses and ended Tuesday’s session slightly higher at the start of a shortened trading week, as investors adopted a cautious stance ahead of upcoming inflation and GDP data releases.

The Nasdaq Composite rose 0.1% after falling more than 1% earlier in the session, while the S&P 500 and Dow Jones Industrial Average also closed about 0.1% higher.

This modest recovery follows the worst week for equities since the start of 2026, with the Nasdaq losing more than 2% amid renewed concerns about the impact of artificial intelligence developments on software and IT services companies. These concerns overshadowed recent lower-than-expected inflation readings and a stronger-than-anticipated January employment report.

Technology stocks delivered mixed results. Apple gained 3.2%, supported by reports of intensified efforts to develop AI-enabled wearable devices. Nvidia and Amazon also recovered, each rising close to 1%.

However, Tesla, Alphabet, and Microsoft declined more than 1%, while Meta posted a modest loss, reflecting continued caution around the broader technology sector.

In media stocks, Paramount Skydance rose around 5% after Warner Bros. reportedly resumed acquisition discussions with Discovery, potentially reshaping competition in the streaming sector following Netflix’s previously approved bid. Warner Bros. shares gained nearly 3%, while Netflix edged up 0.2%.

Investors are now focused on the upcoming release of the Personal Consumption Expenditures (PCE) index — the Federal Reserve’s preferred inflation gauge — due Friday. Fourth-quarter GDP data will also be closely watched as both indicators could shape expectations for monetary policy at upcoming Federal Reserve meetings.

In the bond market, the yield on the 10-year U.S. Treasury note rose slightly to 4.07% from 4.05% at Friday’s close, influencing borrowing costs across consumer credit markets, including mortgages.

Precious metals remained volatile, with gold falling about 3% to $4,895 per ounce and silver dropping roughly 6% to $73.50. West Texas Intermediate crude futures declined 0.9% to around $62.35 per barrel.

In cryptocurrency markets, Bitcoin traded near $67,700 after briefly surpassing $70,000 over the weekend. Meanwhile, the U.S. dollar index strengthened slightly, rising 0.2% to 97.10.

Market Outlook

Near-term market volatility is likely to remain contained as investors reduce risk exposure ahead of key macroeconomic data releases. A higher-than-expected PCE inflation reading could reinforce expectations that interest rates will remain elevated for longer, potentially pressuring growth and technology stocks.

Conversely, softer inflation data may revive hopes of an eventual rate-cut cycle, supporting equities and broader risk assets.